Germany's Federal Constitutional Court [official website, in German] on Tuesday rejected as unfounded three constitutional complaints against German and European legal instruments and other measures in connection with both the European Monetary Union rescue package and the financial aid package for Greece. The high court ruled [press release] that by voting through national acts that implement the broader European measures, the Bundestag, the national Parliament of the Federal Republic of Germany [official website], did not unconstitutionally impair its own ability to adopt and control the nation's budget, nor did it infringe on the budget autonomy of future parliaments. The court's approval of the Monetary Union Financial Stabilisation Act, which authorizes the aid for Greece, and the Act instituting the European Financial Stabilisation Mechanism (EFSM) [materials], was welcomed by euro zone nations [AFP report] and the European Commission, and hailed by German Chancellor Angela Merkel [official website] as validation of her much criticized euro zone policy. Additionally, share prices across Europe markets soared following the court's announcement, with German stocks peaking at a rise of more then three percent.
In May of last year the German constitutional court refused to issue a temporary injunction [JURIST report] against the German government's 22.4 billion ($28.5 billion) contribution to the bailout package for Greece, which has been gripped by a dire debt crisis [BBC backgrounder] and faces severe austerity measures as it grapples with its debt. The court held that the complainants seeking the injunction did not produce any concrete evidence that their rights under Germany's Basic Law could be "seriously and irreversibly" affected as a result of the guaranteed loan. The court's press release also noted that potential liability risk as a result of the contribution is outweighed by reducing the risks of damaging Germany's national economy as a result of instability of the European Monetary Union. The EU and International Monetary Fund (IMF) [official website] announced the initial 110 billion bailout package for Greece earlier that month, and it was subsequently approved by euro zone leaders [BBC report].